Statement from the Chief Executive Officer of the Accommodation Association of Australia, Richard Munro, regarding taxation arrangements for non-permanent residents:

The accommodation industry is pleased the Federal Government has announced a review of the application of the non-permanent resident tax rate to backpackers.

The so-called “backpacker tax” has and would have continued to cause difficulties for operators of tourism accommodation businesses, particularly those in regional and remote parts of Australia, who rely on visitors from overseas, including backpackers, to fill positions.

Ideally, whichever party wins government at the upcoming election should choose not to proceed with the tax.

Australia’s accommodation industry is keen to send the following message around the world: ‘Anyone who is considering a backpacking holiday in Australia will no longer be hit with this tax impost and therefore, we urge you to place Australia on top of your “bucket list” again.